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Waffle-Bund Spread Hits All Time High
While Europe was only kidding that it has a plan of a plan in the past two weeks, stocks and the EURUSD were both soaring higher, even as European core spreads were leaking ever wider fully aware that the equity market headfake was predicated primarily by FX repatriation by troubled US banks. Now that the post smooth talking euphoria has worn off, and it is Coyote Ugly time, stocks are not too happy, while spreads continue to push ever wider. Case in point is the Waffle-Bund spread, which as of a few minutes ago hit an all time wide spread of 235 bps, and rising. And as Peter Tchir pointed out earlier, the moves tighter in CDS is driven entirely on fears that any minute now Europe will ban all naked sovereign CDS. The immediate result of this will be to force hedging and negative sentiment to move to cash and lead to even bigger cash bond blow ups. But Europe's idiot regulators will find this out the hard way, just like the discovered that the best way to blow up your financial system is to ban all short selling in perpetuity.
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Put down the chocolate and occupy Brussels you no-national-language having bastards!
'And as Peter Tchir pointed out earlier, the moves tighter in CDS is driven entirely on fears that any minute now Europe will ban all naked sovereign CDS. The immediate result of this will be to force hedging and negative sentiment to move to cash and lead to even bigger cash bond blow ups.'
Question: Will this force my shorts across the pond? Don't answer that only I know the answer.
The currency wars continue. These politicians know nothing.
http://jimrickards.blogspot.com/
You hit it Gene. Why do the Nederlander's speak "Dutch", and then they who must remain nameless, speak Phlegmish? It is supposed to be the same language? I don't think they even speak it to one another, preferring english due to the spattering and showers inherent in phlegmish.
you can buy/short derivatives on baked goods now? Waffles vs. Cinna-bund??what next cats vs. dogs, alien vs. predator, jason vs. freddie??
coyotes are cute. they get a bad rap.
I wonder what a financial system that actually works would look like...? You know, one of those financial system that rewards the people for their labor...
... and not steal their labor generated wealth from them to transfer it to a few inbred 'rich' families?
nobody knows, never existed. Pharaohs, Kings, Presidents, same shit different day.
there have been pockets of this type of culture that existed in the past... but somehow the overlords always find a way to conquer or destroy "the savages".... and thereby bring modern civilation and culture. oh the irony.
I think everything all starts with good intention...but then greed and power takes over...its human nature and will never change...until maybe one day some alien race enslaves us and then we will truly know how it feels to be used as a pawn in a bigger game of deceit and lies.
funny, I was thinking that happened a few thousand years ago, and continues to play out...
It's always existed. It's called the Black Market.
There are a lot of nations that would disagree. They are representative socialist governments that don't get involved in war, and their people seem to do quite well. A few were sucked into the Euro and probably can't wait for it to go away so they can stop dealing with their less than honest neighbors.
dont you think they will orchestrate an attack on gold and silver first? i mean, you really can't have the peasants running there....
100% sure they will
I even got a call today from a hedge fund to buy gld and slv. Whenever they do that, they try to unwind positions.
Yes, they will try to make gold and silver unattractive by slathering all bullion in Belgium with mayonnaise.
Don't forget that our heroes at the CFTC are supposed to vote on the (already required by law) position limits tomorrow, so the attack today should be vicious. No worries, I'm sure they will all support new rules to emasculate their bosses for us.
Why the US dollar will hyperinflate and why the Asian tiger currencies didn't.
http://freegoldobserver.blogspot.com/2011/10/asian-crisis-follow-up.html
What does this graph mean??? Explain it in simple people terms please. I do see an alarming similarity to 2008 on the graph. That can't be good?
It is the spread between the belgium and the German bonds. The waffles are pricing in more risk.
mercury rising on more Euro-centric debt. crisis ain't over yet.
Just like here.. biker gang just pulled up to the Waffle House and they're looking ornery after an all-nighter.
It basically tells you that more people prefer their waffles with some kind of a spread.
Personally, I like mine with some Maple syrup.
hear Europe regulator's next plan of a plan is to ban ZH on hopes spreads will tighten
Was going to post something similar.
TORONTO, ON – (October 17, 2011) – Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) announced preliminary estimates for the third quarter of 2011. The Company expects to report a loss of $621 million for the quarter. On an operating basis, the loss is expected to be $572 million. Results for the third quarter include losses related to substantial declines in both equity markets and interest rate levels, which particularly impacted the individual life and variable annuity businesses in SLF U.S. The third quarter was a period of exceptional market volatility. North American equity markets dropped by 12% - 14%, while yields on fixed income securities fell amid economic uncertainty in the European Union and U.S. monetary policy actions aimed at lowering interest rates on long-term treasuries. In the U.S., treasury rates reached historic lows, with 30-year yields down 146 basis points to 2.91%. Under the Canadian insurance accounting model, the future impact of September 30, 2011, market conditions is reflected in our current period results.
Blame Canada!
Looks like their protection is gonna need more protection.
Fuck, I keep forgetting about the goddamn tiger!
--Stu, The Hangover
So the market is down 200 pts. Where the hell is SparkySC, No Mas and mn1 telling us what fools we have been not to buy the dip?
Wait til all these homeowners who think their brand new refi is saving them money get their new insurance premium rate hike for next year...however, most of them will never be able to connect the dots and realize the 2 are connected...
The generic idiocy is actually from Bernanke: "Doing something is better than doing nothing".
They actually just have to talk about their plan.
"A little bird told me there's a plan. The bird also said there's a skittle shitting unicorn in the back yard."
In the graph up until the end of 2006 u see the massive head fake the whole political utopia called eurozone has been. Artifically low interest rates for the whole periphery for decade and the results are out for everyone to see. Massive failure which the eurofanatics try to fix by managing perception and taking on even more debt they cannot pay. It's soon time to disintegrate in the real world too, not just in the bond spreads.
I told you guys.
The first "whiff" of a credit event driven selloff....
Investors immediately pile into U.S. Fiat currency and Uncle Gorilla bonds at warp speed.
i miss the old robo
Insert Netflix insult here.
you can't be right tyler, you are an unregistered blog! besides only rating agencies, which are nationally recognized are allowed to say things and impact market and be unregulated
Look for the market to pare its losses by EOD. There have been some BOS on the SPY and ES after 1:00pm today. I would not be surprised if there were a nice tape bomb to catapult a rally in the last hour. Too late for the CDS naked ban to affect this trading session. Perhaps tomorrow, though.
Belgium is like Europe. Nobody in charge. Different languages. The two halves of the country hate each other's guts. God knows who will continue paying the coupon on the national debt, and rollovers of the principal are looking less likely than they once did. If TSHTF nobody is quite sure who to blame (or, more importantly, sue) or whether there will be a functioning legal system still in place anyway.
the europeons better stop their waffling about more debt!
SP500 daily chart now gives bearish signal, warning of a new leg down. Weekly chart reverts to neutral.
http://stockmarket618.wordpress.com
Anything going up is bullish in this world: inflation, gold, silver, corruption, lies, retail sales, car dealership stockpile, etc
Again the white charts, did this guy not get the memo?
(Ahem.) I'm just gonna leave this right here. Look @the end of it for the kicker.
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